YEAR 12 ACCOUNTING
UNIT:
ES5 Non-Current Assets
UNIT OVERVIEW
This unit focuses on the recording of accounting entries for purchasing,
depreciating and disposing of different types of property, plant and equipment.
ASSESSMENT:
90 minute exam
UNIT DETAILS:
No
Learning Goal
Success Criteria
(I Know I’ve got it when I can …)
1
Explain and categorise current and noncurrent assets.
Clearly explain and correctly identify and
classify assets as either current or noncurrent.
2
Describe asset and accumulated depreciation
accounts.
Name and describe the accounts in the noncurrent section of the balance sheet.
3
Explain the purpose of a property, plant and
equipment register.
Define and list items included in the register.
4
Distinguish between capital and revenue
expenditure items.
Compare and contrast capital and revenue
expenditure. Correctly classify expenditure as
capital or revenue.
5
Explain the distinction between depreciation,
depletion and amortisation.
Describe the different ways non-current
assets diminish over time.
6
Explain the cost allocation concept of
depreciation.
Calculate depreciation using both straight line
and diminishing balance methods.
7
Analyse ledger accounts related to noncurrent assets.
Analyse the accuracy of ledger accounts by
identifying whether entries have been
correctly recorded. If not provide
recommendations on how to rectify.
8
Record the accounting entries for the
purchase of non-current assets.
Correctly prepare general journal entries to
record purchasing assets, including both
capital and revenue expenditure.
9
Record accounting entries for depreciation of
property, plant and equipment.
Correctly prepare general journal entries to
record depreciation for non-current assets.
10
List the five steps of disposing of a noncurrent asset.
11
Prepare a timeline, journal entries, ledger
accounts and balance sheet extracts to
account for the purchase, depreciation and
disposal of a non-current asset over a number
of years.
Correctly prepare journal entries, ledger
accounts and Balance Sheets extracts to
record the purchase, depreciation and
disposal of non-current assets for a set
number of years.